Gold Prices Rise : Dollar Declines Abroad
The U.S. dollar fell in Europe today in technical trading, currency dealers said. Gold prices rose.
A dealer in Frankfurt, West Germany, said the U.S. currency was sent lower at midday Wednesday when markets opened in the United States and banks there started selling dollars for technical reasons.
Other dealers said the morning session in Europe also was technically based, meaning that dealers were selling dollars in the hope that past price performance patterns would be repeated.
The dealers said trading volume was low as the end of the month neared and as market participants awaited Friday’s release of the U.S. index of leading economic indicators.
Many banks close their books at month’s end, and the economic index could indicate whether the U.S. economic boom is continuing or faltering.
In Tokyo, the dollar closed at 249.15 Japanese yen, up from 248.70 yen Tuesday. Later, in London, the dollar was quoted at 248.70 yen.
In London, it cost $1.2945 to buy one British pound, more expensive than $1.2865 on Tuesday.
Other late dollar rates, compared with late Tuesday’s levels: 3.0460 West German marks, down from 3.0710; 2.5497 Swiss francs, down from 2.5750; 9.3075 French francs, down from 9.3725; 3.4380 Dutch guilders, down from 3.4655; 1,949.25 Italian lire, down from 1,960.00, and 1.3643 Canadian dollars, up from 1.3641.
Gold was quoted in London at a late bid price of $317.50 an ounce, up from $316.50. In Zurich, gold rose to $317.50, up from Tuesday’s $315.50. In Hong Kong, gold fell 46 cents to close at $316.48.